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Wirral will seek government bailout to help tackle £49 million defecit

Local News by Ed Barnes - Local Democracy Reporter 11th Oct 2022  
Wallasey Town Hall
Wallasey Town Hall
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Wirral Council will officially request an emergency bailout from government as it seeks to tackle a worrying £49m budget defecit.

At a crucial full council meeting last night, the council agreed to allow leader Cllr Jan Williamson to formally request the support from Whitehall as it battles soaring costs.

The Conservatives opposed the Labour proposal to call for a government bailout pointing to other countries in similar situations due to the war in Ukraine and argued it was too soon to consider such a proposal.

Cllr Tom Anderson, the Conservative leader, called the proposal for a bailout request "premature."

He added: "Might I just remind members that last year despite all the doom and gloom sayers, we got £11m more than was expected."

Hitting back, Labour Cllr Paul Stuart, who represents Seacombe, said: "Cllr Tom Anderson referred to themselves as "us local Conservatives". Well I'm sorry the public will not fall for a Tory in sheep's clothing. Local or not, a Tory is still a Tory."

Councillor Paul Stuart

The budget issue was one of a number discussed during a heated meeting in the town hall, with fracking another key area for debate.

Councillors from Labour, The Greens, and the Liberal Democrats were all vocal in their criticism of the UK government for the council's financial position.

While the Greens supported the proposal for a bailout by Labour, their leader Pat Cleary warned Labour to think about the impact talk of possible bankruptcy may have on people.

Labour Cllr Sue Percy said: "We are not scaring residents. We are just fighting for a fair funding deal from central government." She said she was "pleading" to support the vote and "call for fairer funding for Wirral before it's too late."

Cllr Phil Gilchrist, leader of the Lib Dems, supported Labour's description of the council's financial situation, adding "we have got to get our residents through this winter but also think of the years ahead."

The comments were made during a three hour debate over a series of votes related to the Council's deficit problems, Wirral's countryside and fracking.

Councillors committed to setting a target to insulate an estimated 7,000 homes by 2035. Other votes related to requesting further UK government money to support the fire service, protecting Wirral's green belt and a call to reinstate a ban on fracking went through unanimously.

The Conservatives pointed to the controversial Hoylake Beach Golf resort and West Kirby sea wall as examples of bad past financial management by Labour.

Kathy Hodson, a Heswall councillor, said they had paid £500,000 of council to developers behind the "failed" golf resort.

Cllr Anderson said: "What we have just seen from the party election broadcast there is quite stark when you think about Wirral's finances and their past financial mismanagement."

Despite lots of back and forth over the request for a bailout and "protecting Wirral's green belt," votes calling to reinstate a fracking ban, targets to insulate homes, and funding the fire service passed smoothly.

     

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